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But whether or not the Penney earnings release was funny to you -- probably not if you're a shareholder -- it wasn't pretty. Both earnings and revenue missed expectations for the quarter as the company posted a hefty $163 million loss. The ugly numbers were driven by a huge 19% drop in same-store sales, a sign that customers just aren't shopping at J.C. Penney.

Now what: To some extent, investors probably shouldn't be that surprised. J.C. Penney stores haven't been the hot place to shop for years, and former Apple retail head Ron Johnson was brought in to turn the company around, not help it continue coasting along the road to riches. Turnarounds, particularly in retail, are not easy and rarely pretty -- as we're seeing very clearly with Penney.

Can management grit its teeth and pull out a successful 180 in the years ahead? There will be plenty of ink spilled debating that question, but what's for sure is that the company has a steep hill to climb.

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